This deck is from SVC's workshop on running a successful freelance practice or small creative services firm.

1. Welcome to
Running a Successful Small Firm
or Freelance Business

2. Who to blame:
Michael Courtney
mike@michaelcourtneydesign.com
Larry Asher
larry@workerbees.com

3. Mike’s story
Our Clients
Health Care
Higher Education
Real Estate
Hospitality & Lifestyle
Technology
Cultural
© michael courtney design, Inc. p. 5

7. Larry’s old story

8. Larry’s new story

9. Thousands of babies
have been born at Swedish.
But only one went on to
live there for 3 1/2 years.
Every birth that takes place at Swedish — and there have been more than 200,000 of them — is a
remarkable event. But the 1935 arrival of David Ishii is quite another story.
Sadly, his mother died in childbirth, and David’s father was ill equipped to take care of a newborn. So,
Mr. Ishii made arrangements with Swedish to care for his new son while he took his six other children to
Japan where relatives could look after them.
What was supposed to be a brief absence turned into 31/2 years. So David grew up at Swedish with a
whole team of mothers — all dressed in starched white uniforms.
To this day, David remembers accompanying Swedish’s founder, Dr. Nils Johanson, around the halls of
the hospital. And he faintly recalls a birthday party the nurses threw for him.
It was and is the Swedish way to do whatever it takes to make patients feel at home — even if it actually is your home.
Watch 100 stories about Swedish’s 100 years at www.swedish.org/100years

14. And you are?
Please deliver your neighbor’s
2 minute elevator speech.

16. You need to be an expert.
Ted Leonhardt
tedleonhardt.com
David C. Baker
recourses.com
Blair Enns
winwithoutpitching.com

17. Why be an expert?

18. Why be an expert?
Orthopedics $413,000
Cardiology $351,000
Radiology $340,000
OB/Gyn $243,000
Internal Medicine $188,000
Pediatrics $181,000
Family Medicine $176,000
Medscape Physician Compensation Report, 2014

19. Why be an expert?
$0.07 per ounce $1.19 per ounce

20. The advantages of being an expert.
> Charge more
> Win without pitching
> Better solutions
> Lower anxiety

23. Who are some experts?
MCD Environmental graphics
Worker Bees Health care
CDK Cobalt Automotive retail
Cognition Medical illustration
Hammerquist Active sports
Shaw+Scott Email marketing
Hacker Grp. Direct marketing

24. Expert
Project
The Circle of Life

25. Share
Expert
Project
The Circle of Life
Blog
Tweet
Web Site
Article
Speech
Teach
Ad
DM
SEM
SEO

34. Network
Share
Expert
Project
The Circle of Life
Trade Show
Association Mtg.
Disc. Board
Job Shifting
Grapevine

35. RFP
Response
Network
Share
Expert
Project
The Circle of Life

36. RFP
Response
Network
Share
Expert
Project
The Circle of Life

39. RFP
request
from
Providence
Healthcare
profs. follow
competitors
Featured on
WB website
Swedish
Projects
The Circle of Life

41. Awaiting
word after
pitch
Chris refers
to El
Camino
Connect
with Chris
Bevelo
Healthcare
Projects
The Circle of Life

42. So what are you good at?
Skills Interests Experience Mandatories Prospects

43. So what are you good at?
Skills Interests Experience Mandatories Prospects
What you’re
good at
professionally
Stuff from your
life that you
like, not
necessarily
from your work
Types of
companies and
industries
you’ve worked
on
Must-haves for
companies and
clients you’d
want to work
for
Some
companies that
would be a
good fit

44. Larry’s personal inventory
Skills Interests Experience Mandatories Prospects
Brand strategy New-era
marketing
Healthcare Well-funded
Ad concepts Mac
computing
Real Estate Oppty to travel
Copywriting Baseball Transportation Good taste in
creative work
Project
management
Cycling Financial Svcs. Stable
Creative
direction
Travel Bureaucracies Progressive
Client relations History
Presentations Photography

45. Larry’s personal inventory
Skills Interests Experience Mandatories Prospects
Brand strategy New-era
marketing
Healthcare Well-funded
Ad concepts Mac
computing
Real Estate Oppty to travel
Copywriting Baseball Transportation Good taste in
creative work
Project
management
Cycling Financial Svcs. Stable
Creative
direction
Travel Bureaucracies Progressive
Client relations History
Presentations Photography

46. Larry’s personal inventory
Skills Interests Experience Mandatories Prospects
Brand strategy New-era
marketing
Healthcare Well-funded More Prov H&S
Ad concepts Mac
computing
Real Estate Oppty to travel Proliance
Copywriting Baseball Transportation Good taste in
creative work
Polyclinic
Project
management
Cycling Financial Svcs. Stable Sutter Health
Creative
direction
Travel Bureaucracies Progressive John Muir
Health
Client relations History Prime Health
Care
Presentations Photography St. Alphonsus
Boise

47. Mike’s personal inventory
Skills Interests Experience Mandatories Prospects
Environmental
Graphics
Business of
Design
Hospitality &
Lifestyle
Good Budgets
Design
Concepts
Outdoor sports Healthcare ‘Gets’ what we
can do
Brand Strategy Family &
Friends
Integrated
Design Prog.
Values User
Experience
Client
Relations
Baseball Culture and
the Arts
Forward
looking
Presentations Cooking Fortune 500
companies
Senior
Management
Seeing NB
connections
Making &
building
Higher Ed Good taste in
creative work
Collaborations Travel Real Estate

48. Mike’s personal inventory
Skills Interests Experience Mandatories Prospects
Environmental
Graphics
Business of
Design
Hospitality &
Lifestyle
Good Budgets
Design
Concepts
Outdoor sports Healthcare ‘Gets’ what we
can do
Brand Strategy Family &
Friends
Integrated
Design Prog.
Values User
Experience
Client
Relations
Baseball Culture and
the Arts
Forward
looking
Presentations Cooking Fortune 500
companies
Senior
Management
Seeing NB
connections
Making &
building
Higher Ed Good taste in
creative work
Collaborations Travel Real Estate

49. Mike’s personal inventory
Skills Interests Experience Mandatories Prospects
Environmental
Graphics
Business of
Design
Hospitality &
Lifestyle
Good Budgets Park City,
Snowbird
Design
Concepts
Outdoor sports Healthcare ‘Gets’ what we
can do
University
Hospital(s)
Brand Strategy Family &
Friends
Integrated
Design Prog.
Values User
Experience
University
Campuses
Client
Relations
Baseball Culture and
the Arts
Forward
looking
Seattle
Waterfront
Presentations Cooking Fortune 500
companies
Senior
Management
Starbucks
Seeing NB
connections
Making &
building
Higher Ed Good taste in
creative work
M’s, Storm,
Seahawks
Collaborations Travel Real Estate Hyatt

50. Let’s do yours
Skills Interests Experience Mandatories Prospects

51. Who wants to make money?

54. How much to charge per hour
52 weeks x 40 hours 2,080
Less 2 weeks vacation 2,000
Less 30% non-billable 1,400
Your salary target $_______
Divide by billable hours 1,400
Target hourly rate $____/hr.

55. Take your salary, divide by avail. hours
52 weeks x 40 hours 2,080
Less 2 weeks vacation 2,000
Less 30% non-billable 1,400
Your salary target $80,000
Divide by billable hours 1,400
Target hourly rate $57/hr.

59. Typical freelance expenses
Expense Assumption Cost % of Total
Salary 80,000 64.8%
Payroll Taxes Typically 7% of salary 5,600 4.5%
Office Rent $600/month Pioneer Square 12,000 9.7%
Health Insurance Premera 35-39, $530/month 6,360 5.2%
Cell Phone & Internet AT&T Wireless & Comcast 1,500 1.2%
Promotion Expense Website, travel to 3 conferences 8,000 6.5%
Professional Services Attorney and Accountant 4,000 3.2%
Office Expenses Postage, supplies, toner, etc. 3,000 2.4%
Travel & Entertainment Parking, client lunches, etc. 1,000 0.8%
Taxes B&O and Federal payroll taxes 2,000 1.6%
Total 123,460 100.0%

60. Salary + Expenses + Profit
Your salary target $80,000
Plus other expenses 43,460
Total expenses $123,460
Plus 15% profit target $18,519
Total income target $141,979
Divide by billable hours 1,400
Target hourly rate $ 101/hr

61. Your expense profile
Expense Assumption Cost % of Total
Salary
Payroll Taxes
Office Rent
Health Insurance
Cell Phone & Internet
Promotion Expense
Professional Services
Office Expenses
Travel & Entertainment
Taxes
Other
Other
Total

62. Your income profile
Expense Assumption Amount
Target Salary $75,000
Total Available Hours Less 2 weeks vacation 2,000
Billable Percentage 65% billable, 35% chargeable 65%
Total Billable Hours 1,300
Total Expense Bring forward from expense profile $115,000
Profit Target 20% is on the high side $23,000
Total Expense + Profit $138,000
Optimal Hourly Rate Expense + Profit divided by 1,300 $106/hr

63. Your income profile
Expense Assumption Amount
Target Salary
Total Available Hours
Billable Percentage
Total Billable Hours
Total Expense
Profit Target
Total Expense + Profit
Optimal Hourly Rate

64. Where will $141,979 come from?
That’s nearly $12,000 per month

65. The usual
Hourly

66. The usual Unlikely
Hourly Retainer

67. The usual Unlikely
Hourly
Project
Retainer
Best choice

68. The usual Unlikely
Hourly
Project
Retainer
Markups
Best choice Yes, if you can

69. Sorry.
You’re going to have to track time.

72. Other time-tracking options
FastTrack Schedule 10 for Mac
Function Fox
ProWorkFlow
Function Point
Streamtime
Workgroup 2011
Studiometry
Intervals
Timex + Ticonderoga No. 2

73. Let’s eat.
Because you don’t want to do
financial forecasting on an empty
stomach.

74. Let’s recap the money stuff.

75. Your expense profile
Expense Assumption Cost % of Total
Salary
Payroll Taxes
Office Rent
Health Insurance
Cell Phone & Internet
Promotion Expense
Professional Services
Office Expenses
Travel & Entertainment
Taxes
Other
Other
Total

76. Your income profile
Expense Assumption Amount
Target Salary
Total Available Hours
Billable Percentage
Total Billable Hours
Total Expense
Profit Target
Total Expense + Profit
Optimal Hourly Rate

77. Fill in the blanks.
http://bit.ly/1xcMrOI

78. Essentials of Pricing & Negotiation
1. Seek clients who get it
2. Help them get it
3. Sell a skill, not a thing
4. Document fees

79. Educating your client

80. Educating your client

81. Clients who push back

82. Write a tight contract
1. Define exactly what you’re working on
2. Include the schedule
3. Define number of meetings and locations
4. How change orders will be handled

83. Write a tight contract

84. Write a tight contract

85. Keeping complex work in scope

88. What if the budget is inadequate?
1. Reduce the scope
2. Opt for time+materials
3. Phase the project

89. How to handle change orders

90. How to avoid getting stung

95. Good documentation makes money
1. A written contract
2. Before-the-fact estimates
3. Clear, regular invoices

99. D E V E L O P M E N T E S T I M A T E
CLIENT: Swedish Medical Center
DATE: July 19, 2010 v.1.
JOB TITLE: Ballard OB Outdoor Boards
JOB NUMBER: 6000-365
DESCRIPTION:
Creative Services
Creative development of outdoor boards promoting Ballard OB. Estimate does not include
stock photography, media, or outside production costs.
875
1,050
TBD
Concept Development
Art Direction - Layout
Art Direction - Production Phase
Electronic Production/Digital Studio TBD
Production Management - Development Phase 350
Production Management - Production Phase TBD
350
TBD
Project Management - Development Phase
Project Management - Production Phase
Sub-Total Creative Services $2,625
Outside Services
TBD
Stock/Original Photography
Prepress/Printing TBD
Sub-Total Outside Services 0
TOTAL Estimate $2,625
Note: Prices quoted in this estimate are for budget purposes only and are as of the date given. Unless specifically noted, these prices are subject to
revision based on cost increases from suppliers, substantial changes in the scope of the project or major client revisions. Concepts shall remain the
property of Worker Bees, Inc. until charges are paid in full.
Client Acceptance: Date:
XXX
XXX
TBD
TBD
XXX
TBD
XXX
TBD
$ XXXX
$ XXXX

101. P R O D U C T I O N E S T I M A T E
CLIENT: Swedish Medical Center
DATE: September 7, 2010 v3
JOB TITLE: Ballard OB Outdoor Boards
JOB NUMBER: 6000-365
DESCRIPTION:
Creative Services
Creative development and production costs of 9 outdoor boards promoting Ballard OB.
875
1,050
2,450
Concept Development
Art Direction - Layout Phase
Art Direction - Production Phase
Electronic Production/Digital Studio 1,215
Proofreading 100
Photo sourcing/Parent coordination 875
Production Management - Development Phase 350
Production Management - Production Phase 875
350
700
Project Management - Development Phase
Project Management - Production Phase
Sub-Total Creative Services $8,840
Outside Services
1,190
Printing and Posting
Sub-Total Outside Services $1,190
TOTAL Estimate $10,030
Note: Prices quoted in this estimate are for budget purposes only and are as of the date given. Unless specifically noted, these prices are subject to
revision based on cost increases from suppliers, substantial changes in the scope of the project or major client revisions. Concepts shall remain the
property of Worker Bees, Inc. until charges are paid in full.
Client Acceptance: Date:
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX
XXX $ XXXX
$ XXXX
$ XXXX
XXX

103. B I L L T O
Melissa Tizon
Swedish Medical Center
Marketing Communications
747 Broadway
Seattle, WA 98122
D A T E
04/05/11
I N V O I C E
311008
D E S C R I P T I O N A M O U N T
Art Direction/Production Phase 750.00
Electronic Production/Digital Studio 750.00
Production Management/Photo Phase 780.00
Project Management/Production Phase 800.00
Steve Schneider Photo, Photos, #69550, 3/7/11 941.20
Steve Schnieder Photo, Photo Shoot, #69575, 3/28/11 352.95
Total Reimbursable Expenses 1,294.15
Previously Billed $4,025.00
Total to Date $8,399.15
Estimated Amount $9,795.00
Over/(Under) Estimate ($1,395.85)
J O B T I T L E
6000-425 Leapfrog Ad
T O T A L
I N V O I C E
500 Aurora Avenue North, Suite 105 ! Seattle, WA 98109 ! Tel 206.930.3417 ! Fax 888.930.3417 ! accounting@workerbees.com
$4,374.15
Client Name
Company
Department
Address
City, State Zip
XXXX-XXX Job Title

107. Q: What have you learned from failure?
A: I had to stop going to auditions
thinking, “Oh, I hope they like me.”
I had to go in thinking I was the answer
to their problem.
You could feel the difference in the room
immediately.
The greatest lesson I learned was that
sometimes you have to fake it. And you
have to be willing to fail.

108. Marketing your business
If you know how to market your
clients’ products and services,
you should be able to do your own.

109. What marketing will do for you:
> Keep you booked
> Give you options
> Know the market’s price threshholds
> Turn down unprofitable work
> Know what’s coming
> Develop new clients, reconnect with old ones
> Turn cold calls into warm calls

110. Who is your audience?
Peers vs. Prospects

111. Who is your audience?
Peers vs. Prospects

113. What is your message?
Remember 76 slides ago?

114. What’s the best way to reach prospects?
If no obvious ones come to mind,
you may have chosen a field that
has no viable, vital network.

115. Remember:
Marketing starts with your expertise

120. A model we could all stand to follow

130. Channel What’s Needed? Who Will Do? How Much? Due When?
Website
Facebook
Twitter
LinkedIn
Blog
Publications
Speaking
Associations
DM/Ads
Portfolio
Getting the word out.

131. Getting the word out.
Channel What’s Needed? Who Will Do? How Much? Due When?
Website Launch new site Larry $0 Done
Facebook Launch WB
company page Larry $0 Jan. 1
Twitter Hit 300 followers Larry $0 Jan. 1
LinkedIn
Blog
Publications
Speaking 1 Speaking Engmt.
Per Quarter
Larry $0 On-Going
Associations -- -- -- --
Direct Mail/Ad -- -- -- --
Portfolio -- -- -- --

132. Do what you can do.
> Don’t try to do everything
> Keep it simple (so you’ll do it)
> Consistency is king
> Aim mostly at prospects, not peers

133. Channel What’s Needed? Who Will Do? How Much? Due When?
Website
Facebook
Twitter
LinkedIn
Blog
Publications
Speaking
Associations
DM/Ads
Portfolio
Let’s try it

134. Some (hopefully) useful resources

148. Let’s evaluate

149. Thanks so much for coming
Slide Deck:
slideshare.net/svcseattle
Email:
mike@michaelcourtneydesign.com
larrya@workerbees.com
Twitter:
@WorkerbeesMC
@MCourtney1211
Facebook Discussion Group:
facebook.com/groups/seattlecreativebusiness/